FTX Review

FTX Exchange

4.2

4.2/5
Min Deposit: €1

Pros & Cons

Pros

Cons

FTX In a Nutshell

FTX is a cryptocurrency exchange registered in Antigua and Barbuda. It has been up and running since February 2019.

FTX is a cryptocurrency exchange based in Barbuda and Antigua and was launched recently in 2019. The FTX exchange mainly focuses on offering its user’s derivatives trading, an instrument priced based on the value of other assets, a typical trading instrument with stocks and bonds. In the world of crypto, the value of derivatives is reliant upon or derived from the prices of various cryptocurrencies.

FTX exchange also offers its users access to a range of trading products such as Bitcoin options, 45 leveraged tokens, 20 perpetual swaps, MOVE contracts, and prediction markets.

FTX Overview

FTX is a cryptocurrency derivatives exchange that quickly proved itself in an ever-expanding part of the crypto trading market.

The exchange has received a notable amount of positive feedback among the crypto trading community and already flaunts high trading volumes. This meteoric rise has been quite impressive due to the relative young stage of the platform and on top of the fact that FTX is unavailable in the US, one of the biggest crypto markets.

FTX launched in early 2019 and provides users with access to trading products such as Bitcoin options, over 45 leveraged tokens, MOVE contracts, 20 perpetual swaps and prediction markets.

Furthermore, the exchange also offers regular spot trading and transfers in fiat and cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and other Stablecoins. FTX caters to both retail and institutional investors and provides a series of products and services intended for more dedicated traders.

The platform also provides an OTC service for anyone interested in making big crypto investments, while the mobile app suits anyone who likes to stay up to date with their accounts on the go.

FTX review

FTX Fees

Every time a user places an order on FTX, the exchange charges the user a trading fee. The trading fee is usually a percentage of the value of the trade order. At this exchange, they split between takers and makers. Takers are the ones who “take” an existing order from the order book.

FTX takers fees are 0.07%, and these taker fees are in line with the industry average for other cryptocurrency derivatives exchanges.

Yet, the taker fees are not even the best selling point on the exchange. Currently, the FTX platform only charges markers fees ranging from 0.00% to 0.02%! A great deal all around for the makers on the exchange.

FTX Deposit Fees

Processing deposits are completely free on the FTX exchange. FTX supports fiat deposits in USD, EUR, GBP, AUD, CAD, CHF, HKD, SGD, and ZAR, and the following cryptocurrencies can all be deposited:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Binance Coin (BNB)
  • Litecoin (LTC)
  • FTX Token (FTT)
  • BitMax Token (BTMX)
  • BiLira (TRYB)
  • USD Stablecoins (USDT, USDC, TUSD, PAX, HUSD, and BUSD

There are no fees for crypto deposits as FTX pays the blockchain fees. However, fiat withdrawals below $10,000 accrue a $75 fee while all other transfers are fee-free.

FTX Withdrawal Fees

This exchange does not charge any withdrawal fees themselves. However, as always, there are network fees associated while making a transaction. This means that the only fee users need to be concerned about when withdrawing funds from the FTX exchange is the network fees paid to the miners. This withdrawal fee, or rather lack of withdrawal fee, is very competitive compared to some of its rivals.

Start trading on FTX today!

You can open an account with FTX in just a few minutes. Click on “Open Account” and fill in your information.

Min Deposit: €1

FTX Security

Since the creation of the platform in 2019, the exchange has managed to avoid hacks and malicious attacks. However, the team at FTX has only shared a few details regarding the security measures used on the platform, so we have to assume that they are following security best practices.

Still, what we do know is that FTX uses full SSL encryption and offers its users two-factor authentication through Authy, Google Authenticator or SMS verification.

In addition, FTX has previously stated that they use a unique liquidation engine and backstop liquidity provider used to create a three-step solution, aimed at managing margin calls and limiting clawbacks. The liquidation engine runs intelligent and efficient values to manage liquidations and close positions before they go negative.

Furthermore, users on the platform have the option to receive warnings to help monitor and close any positions below the 4.50% maintenance margin, intended to minimize the effects of riskier trades and prevent clawback.

Overall, FTX seems to be a solid platform as the team has incorporated sophisticated insurance mechanisms while being supervised by the founders of Alameda Research, who acted as market makers for BitMEX and OKEx, and have a wealth of experience in the sector.

FTX Services

The FTX exchange has found several gaps in the cryptocurrency market and has tried to fill the gap by offering innovative trading products such as futures, leveraged tokens, options, MOVE contracts, and prediction markets. This has turned out to be a success factor for the exchange, and today FTX holds the title of the worlds 4th largest cryptocurrency exchange.

Now, users on FTX can enjoy the benefits of futures trading on over 20 different cryptocurrencies, leverage trading on 45 currencies, spot trading and several other trading options.

FTX Futures

FTX offers quarterly and regular futures on over 20 popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Chainlink (LINK). The exchange also offers Index Futures which allows users to trade different segments of the crypto market. These segments include large-cap coins (ALT-PERP), mid-caps (MID-PERP), and small-cap coins (SHIT-PERP). Users can also trade privacy tokens (PRIV-PERP), exchange tokens (EXCH-PERP), and regional baskets (DRGN-PERP) by choosing the relevant index. In addition, FTX also lists Oil contracts that expire to the spot price of WTI oil.

FTX Futures​

FTX Leveraged Tokens

FTX also offer its users leveraged trading. But, to our knowledge, the maximum leverage level is 3x. In comparison, several other exchanges offer 100x or even more as your leverage level.

Furthermore, it is good to know that leveraged trading comes with increased risk. Someone trading with leverage can see massive returns but equally massive losses, something to be extra cautious with.

For example, if a user has $10,000 in their account and put $100 on Bitcoin (BTC), hoping it will increase in value, they do so with 100x leverage. If Bitcoin (BTC) then increased in value by 10%, the user would have earned $10 by holding bitcoin, but with the 100x leverage, the user would earn an additional $1,000 ($990 more than without leverage). On the flip side, if Bitcoin (BTC) would decrease in value by 10%, the user would have lost $1,000 ($990 more than without leverage). As you can see, leverage trading offers the potential for a huge upside, but the downside is just as big.

FTX OTC-desk

Now let’s take a quick look at OTC trading. If a user with a large amount of cryptocurrency wanted to sell the entire amount, regular trading platforms would not be a great idea as large trades could affect the market price, and the order book might even be too small to execute the trade. A solution to this problem is OTC trading (Over the counter).

The FTX exchange offers OTC trading, which in short is a helpful tool for big crypto investors to either buy or sell large amounts of assets. This service helps traders and makes it possible to make large traders even through the FTX mobile app.

FTX MOVE

FTX also provides a feature called MOVE contracts which act as futures that expire according to the raw amount of BTC that moves within a certain period (trading volumes).

This feature makes it possible for users to trade/bet on the amount of Bitcoin they believe will move and then profit regardless of the direction of the currency. Using MOVE contracts, the overall volatility of Bitcoin over a set period serves as the value of the contract itself.

FTX MOVE​

FTX Options

FTX also offers Bitcoin options with the contracts expiring in USD. Users can open call or put options contracts, which essentially work as “right to buy” or “right to sell” positions, in the same way as futures contracts. Traders can also decide to go long or short with the leverage on the trade.

Generally, options contracts allow the trade of “the right” to either buy or sell an asset at a determined price and by a set time/date, and users can also configure the strike prices and expiration dates.

FTX Options​

FTX Design

Once you log in to FTX, you can tell that the exchange is designed with beginners and advanced traders in mind. The platform offers an easy to navigate, simple, and intuitive user interface. The default interface has a side navigation with easy access to FTX trading products, wallet, positions, account settings and pending orders. Allowing for easy access to all the most important resources and pages.

FTX interface

The centre of the interface is where you can locate all the trading charts, directly integrated with TradingView, recognised for its advanced trading features, drawing tools, indicators and chart pattern overlays. Traders can easily right-click on charts to place both limit and stop-loss orders at selected price levels.

Below the charts, users can view and analyse the live order books and the volume against the big and ask prices. Users can also quickly open a new position using the order window located in the middle of the screen. The order window is simple and entry prices can quickly be filled by clicking on the order book.

place order on FTX

Overall, the FTX design is sturdy and fitted for all sorts of traders looking to invest in cryptocurrency on the platform. The charts can be resized and include advanced charting tools and multiple trading options. However, the learning curve on the exchange is steeper than some of its counterparts, such as Binance.

Who Should Use FTX?

When gazing at the broad range of products and services on offer, it is pretty clear that FTX is not necessarily trying to target the average amateur. Features such as Bitcoin Options, perpetual swaps, leveraged tokens, and MOVE contracts take time to master and are perhaps not suited for someone just getting started.

Derivatives trading is more complicated than some might think, and leveraged trading can result in higher losses than anticipated. The complex nature of these advanced trading products does make the platform more suitable for seasoned traders.

However, FTX does offer resources that allow users to continue to increase their knowledge about its products and improve their trading skills. Some of these resources include guides that cover essential topics and other common questions, a Youtube channel, and a blog full of various articles and news in the space.

Overall, the FTX exchange is best suited for skilled traders aware of the added risks and the potential consequences of these advanced tools, while it also requires traders to stay on top of all the latest crypto developments.

FTX Review: Final thoughts

In summary, FTX is a diversified cryptocurrency exchange. It is mainly known for its derivatives trading with cryptocurrencies. The platform gained popularity for its Bitcoin options trading and more than 45 leveraged tokens. The FTX exchange has various benefits, from 20+ perpetual swaps to 101x leverage.

However, the platform is considered risky for leveraging altcoins, although FTX has a solid liquidity level. The exchange can back trades worth millions of dollars, and despite market volatility, the platform still offers options to its users. All in all, FTX has some of the best offerings available for professional cryptocurrency traders.

Start trading on FTX today!

You can open an account with FTX in just a few minutes. Click on “Open Account” and fill in your information.

Min Deposit: €1

About the author

Gustav Eriksson

Gustav Eriksson

Gustav Eriksson is a cryptocurrency investor and founder of KrispCrypto. He has been a cryptocurrency investor for over ten years and loves personal finance.

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